Canfax Weekly Article | Report for the week of September 9, 2024

In Alberta last week, weighted average fed steer and heifer prices closed the week around $243.50/cwt live, $1.50/cwt lower than the previous week. Over the past month, fed prices have declined $10/cwt. Light trade was reported last week with buying interest noted from all three Western Canadian packers. Dressed sales were reported from $403.25-409.00/cwt FOB feedlot. Cattle that traded were being booked for the first half of October delivery. Last week, Alberta fed prices were par with the Ontario market. YTD Western Canadian fed beef production is steady with last year.

Last week, the Canfax average feeder steer price was $6.50/cwt lower, while heifer prices eased $2.50/cwt. Week over week, the largest price declines were on 5-700 pound steers with prices down $10-15/cwt. Alberta 550 pound calf prices are trading at the lowest point since February. Last week, heifers over 900 pounds traded $1/cwt stronger, prices are $13/cwt higher than last year. The yearling run should be kicking into full gear; however, auction volumes continue to be fairly light for this time of the year. Alberta auction volumes were just over 24,000 head, 10,000 head smaller than last year. Canadian feeder cattle exports to the US for the week ending August 24th were 1,827 head. This is the tenth consecutive week that exports have been below last year.

Alberta D2 cows traded $5/cwt lower and live trade was reported from $170-199/cwt. D3 cows averaged $170/cwt. For the month of August, Western Canadian cow slaughter was the smallest since 2012. Last week, butcher bulls traded $4/cwt lower, averaging $208/cwt, with a range from $190-230/cwt. Canadian butcher bull exports to the US for the week ending August 24th were 745 head.

Bull

• U.S. beef exports for the month of July were 8 per cent larger than last year
• Canadian pork exports for the first half of this year are 6.6 per cent larger than last year
• Statistics Canada July 1st cattle inventory report should be viewed as bullish

Bear

• Since the middle of August U.S. 50 per cent trim prices have dropped 22 per cent
• U.S. steer carcass weights are within 10 pounds of their record highs set back last year
• September is traditionally a tough beef demand month as back to school bills and summer holiday bills come due